Coffee Trade Models

In his book, James Hoffmann writes that coffee trade falls primarily into four major models: partnership coffee, direct trade, fair trade, and auction coffee.

What actually separates these four models? To some extent the names speak for themselves, but it is worth looking at the details behind each one, so FrontStreet Coffee walks through them below.

Partnership Coffee

Partnership coffee describes roasters buying directly from smallholder farmers and holding long-term purchasing relationships with them. The aim is to encourage small farmers to organize, so they can import high-quality organic green coffee together, build lasting relationships, and move the trade toward fair and just practices. The broader goal is to make coffee farming a sustainable and rewarding undertaking for farming families and their communities.

Partnership Coffee is Committed to:

Thriving Import Business

In the eyes of our trading partners, our trade terms are the best available. Our business practices are defined, documented, and shared so they can serve as a model for the wider coffee industry.

Prosperous Communities

We understand our trading partners' basic needs, and we open the door to specific expertise that helps small farmers raise their production capacity and meet those needs. We measure the impact of these relationships not only in economic terms, but also by the overall quality of life of our partners and their communities.

Fair Trade Coffee

Fair trade coffee is one response to the way mainstream coffee trade is organized. In most of North America, Western Europe, and Japan, that structure looks very similar: coffee is bought from exporting countries by international trading companies, distributors, and traders. The largest European roasters also run their own internal procurement arms that deal directly with origins. Still, by and large, roasters buy from international trading companies or from specialized import agents who represent specific exporters in producing countries. International trade plays a crucial role in the global marketing and distribution of coffee, and fair trade certification is one attempt to make that chain more equitable for the farmers at its base.

Direct Trade

Direct trade refers to relationships built directly between coffee roasters and coffee producers rather than through importers. Roasters talk with producers themselves and request samples of green coffee beans. There are real-world ways to make those connections, such as local cuppings, auctions, or events created specifically to bring roasters and producers together. It is worth noting, though, that many roasters want to offer a range of coffees from different origins, which is impossible if you work with only a single producer. Direct trade relationships are therefore best used as one part of a procurement strategy rather than as the sole way to meet all of your needs.

Auction Coffee

Specialty coffee auctions provide an excellent forum for promoting high-quality coffee. They also help forge direct relationships between producers and buyers, and they often ensure that farmers receive good prices for their harvest. Coffee auctions have been used for centuries and remain a popular way to trade green coffee beans; they are sometimes used to showcase high-quality coffee as well. In Latin America, auctions are most commonly used for selling specialty coffee. In most African countries, auctions are government-operated and serve as the primary channel for commodity coffee trading. In recent years, though, some specialized auctions have also taken place in Africa - in 2020, for example, Cup of Excellence came to Ethiopia.

FrontStreet Coffee Recommendation

The trade model behind a coffee shapes how much of the final price reaches the farmer, and it also shows up in the cup. Coffees sourced through partnership and direct trade tend to come with a producer's name and a clear story attached. FrontStreet Coffee's Brazil Queen Estate, grown from the distinctive Yellow Bourbon variety in the world's largest coffee-producing country, is a good example of a traceable, everyday coffee: gently sweet and clean, medium roasted to bring out cream, peanut, chocolate, toasted bread, and sugarcane. It brews well as pour-over and also works in a moka pot or an espresso machine.

If you prefer a sweeter, fruit-forward medium roast, FrontStreet Coffee's Strawberry Candy Geisha blend is worth trying. It brings together two well-known Central and South American origins - a honey-processed Costa Rican coffee and a washed Panama Geisha - and is medium roasted to draw out both orange-blossom honey notes and a rounded sweetness. It suits cold brew, pour-over, and espresso alike.

For something closer to home, FrontStreet Coffee's 2013 Sun-dried Typica carries the classic character of Yunnan smallholder coffee. It is medium roasted to preserve its balanced, gentle profile, with soft notes of nuts, brown sugar, black tea, and dried apricot. It works for pour-over, cold brew, and drip machines, and it offers strong value.

At the other end of the spectrum, FrontStreet Coffee's Jamaica Blue Mountain No. 1 is grown from Typica, one of the world's most respected Arabica varieties, and its terroir is essential to its balance. It is medium roasted so that acidity, bitterness, sweetness, and body fuse into one elegant whole, opening with chocolate, roasted nuts, cream, and caramel. For anyone who wants a benchmark for what a balanced medium roast can be, it is hard to beat.